Roy Blanga

Q&A: Groupon MD Roy Blanga on growth and trust in the daily deals industry

Since launching in the UK in 2010 Groupon has achieved an astonishing rate of growth that is almost unrivalled in any other industry.

But, as was inevitable for a business that grew so big so fast, Groupon has also seen its fair share of negative headlines.

In December last year the OFT revealed that the company had breached UK advertising regulations 48 times, leading to an investigation into its business practices.

Then there’s the ‘accounting issues’ which have seen the companies share price drop from a high of $29 to less than $5 in less than year.

Groupon claims daily deals are “virtually risk-free for merchants”

Groupon UK MD Roy Blanga this morning defended his company’s business model, stating that the deals were “virtually risk-free for merchants”.

He said that daily deals sites provide a new source of inspiration for customers and help drive incremental sales.

During a speech at the Daily Deals Summit Europe, Blanga also claimed that it is a misconception that deal subscribers were all driven by discounts.